DrywallThe end is near for the Chinese drywall saga that hit the Southeast last year, and Florida in particular, as manufacturer Knauf, and its Chinese affiliate, Knauf Plasterboard Tianjin, agreed to a settlement that would provide cash to replace drywall in affected homes.
According to NBC Miami, the settlement will cost between $600 million and $1 billion as the company will cover the costs to repair all 4,500 houses affected, 55 percent of which are in Florida. [more]
Armin and Lisa Seifart, the Coconut Grove homeowners in the nation’s
first jury trial over defective Chinese drywall, have been awarded $2.5
million in damages from a Miami-Dade County Circuit Court jury. The
damages were apportioned among several defendants, including 55 percent
of the damages assessed to Miami-based Banner Supply, 35 percent to
Knauf Plasterboard Tianjin and 5 percent to each of the importers and
exporters. The damages include $100,000 per month of the nearly three
years during which the Seifarts could not live at home. Attorney Ervin Gonzalez
had asked the jury for $4.4 million for his clients. [Miami Herald]
According to a deposition of a Banner Supply executive taken last
month, the drywall it was receiving from Chinese manufacturer Knauf
Plasterboard Tianjin in 2007 was so bad, the company wouldn’t take it
for free. The deposition, along with a confidential agreement between
Banner and Knauf, were unsealed by Judge Joseph Farina today. Under the
terms of the agreement, KPT agreed to substitute Banner’s remaining
drywall for free, and Banner was not to say anything about the switch.
KPT said in a statement that it did not have information about
complaints from customers. KPT said it tested the product and found no
health risk. Banner said it, too, was a victim, like the drywall-affected homeowners. [Miami Herald]
A federal court in New Orleans has ordered German-owned Knauf Plasterboard Tianjin, which built millions of tons of contaminated drywall, to pay for damages to a homeowner. The ruling by Judge Eldon Fallon marks the first time Knauf has had to pay for problems related to contaminated Chinese drywall, giving the plaintiffs a $164,049 recovery, most of which would go toward restoring the home. Knauf was also ordered to pay for appliances damaged by corrosive sulfur emanating from the drywall. The company announced that it plans to appeal, noting that the ruling involved just a single home. [SFBJ] [more]
Homeowners who have drywall made by Knauf Plasterboard Tianjin Co. only have until Dec. 2 to prove it. Knauf agreed to accept a class-action legal complaint for one month,which Boca Raton attorney Allison Grant said means a settlement is very possible. However, those who don’t make the deadline for the class-action suit will be faced with large expenditures of time and money if they still want to sue Knauf. [Sun-Sentinel]
The thousands of homeowners and builders who’ve sued Chinese makers of defective drywall should keep their expectations low. Attorneys for these plaintiffs acknowledge that Chinese companies have a history of disregarding judgments in U.S. civil courts, and the noxious-smelling drywall fiasco will likely yield the same result. Kerry Miller, the lead lawyer for the defendants, represents U.S. homebuilders, drywall installers and distributors, and Knauf Plasterboard Tianjin, the only Chinese firm to acknowledge the litigation. He, too, said other Chinese companies will probably not respond to the suits. This reality has left opposing attorneys scrambling to find out who could be held liable in any future drywall settlements.
